What is the initial step a client should take when entering a brokerage relationship?

Establishing a written agreement is the initial step a client should take when entering a brokerage relationship because it formalizes the relationship between the client and the broker. This agreement outlines the rights and obligations of both parties, clarifying the scope of the brokerage services to be provided. By having a written agreement, it ensures that both the client and the broker have a shared understanding of the terms, which can include the nature of the representation, commission details, and the responsibilities of both parties during the transaction process.

This is crucial because without a written agreement, there may be misunderstandings or disputes regarding expectations, duties, and compensation. It essentially serves as a legal foundation that protects both the client’s interests and the broker’s rights throughout the duration of the relationship.